David Jetuah, Accountancy Age, Tuesday 17 August 2010 at 09:12:00

RSM Tenon in discussions with the government to secure an exemption forforeign sports stars' overseas income after criticisms mount

Advisers from RSM Tenon are in discussions with the government to stop thetaxman claiming a slice of sports stars' overseas earnings after competing inthe UK.

The tax experts are negotiating on behalf of various groups in the wake ofsporting stars including Tiger Woods andUsainBolt threatening to steer clear of the UK.

"We're working with a number of groups and the Department for Culture Mediaand Sport on this issue, "said RSM Tax director Pete Hackelton. "Discussions areongoing."

"The aim is to get an exemption for non-UK source endorsement income."

In the case of Bolt he may have paid more in tax than the prize money hewould have earned for winning a recent athletics meeting.

The compromise for HMRC would be that the tax revenues generated from havingmajor sporting events based here, would make up for any supposed loss to theExchequer caused by dropping claims to overseas income.

"The rationale is that if this doesn't happen, the UK will struggle toattract major events in future, the tax take from which (VAT on ticket salesetc) should more than cover any perceived shortfall due to the exemption.Hopefully there will be some movement on this," Hackleton added.

Further reading:

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